Disputes about life insurance proceeds among family members are not only emotionally difficult, but they can also negatively affect financial affairs of those who relied on the proceeds of a life insurance policy after a loved one’s untimely death.
Law surrounding estate planning, family, divorce, child support, trusts and wills may all come into a play after a person’s death. Dealing with financial affairs after a family member’s death may become a real problem because of the complexity of laws and the amount of documents involved.
Family disputes arise when two or more individuals have a claim for the same life insurance benefits or the assets of the decedent’s estate. Disputes regarding entitlement to a life insurance payout may stem from conflicting designations on several documents executed by a decedent.
For example, if John, deceased, willed all his assets including proceeds from his group life insurance policy to his son Michael, but kept his ex-wife Maria as a beneficiary on his group life insurance policy, both John and Maria may have a claim for life insurance benefits.
The situation may get even more complicated if there is a trust that mentions the same life insurance policy or if there is a divorce/child support order directing John to maintain a life insurance policy for the benefit of his children or his former spouse.
Life insurance is a non-probate asset. In most cases, proceeds from a life insurance policy will never become part of the decedent’s estate and will be paid to individual beneficiaries directly. When an estate is named a beneficiary on a life insurance policy, benefits will be paid directly to the estate. An estate may also receive life insurance proceeds if a beneficiary has predeceased an insured or is otherwise unavailable.
Generally, since a life insurance policy is a contract, contract laws will govern a life insurance dispute. There are many situations, however, when other laws and regulations come into play.
As many laws become involved in a family dispute, you need a team of attorneys who will represent your best interests professionally and aggressively. How you will handle a family dispute over life insurance benefits may affect your relationship with the family member in the future.
We always advise our clients to seek legal representation as soon as possible to avoid involvement in stressful, emotional contacts with the opposing side.
A life insurance attorney will act in your best interests and will work with the other family members and their attorneys in a professional diplomatic way. At our life insurance law firm, we understand the difficulties family members go through when they are involved in a life insurance lawsuit.
At our law firm, life insurance lawyers work hard on achieving the results you deserve. We collect life insurance claims fast and work with our clients through difficult times involving a family dispute, beneficiary contests, denied life insurance claims, delayed life insurance claims and interpleader actions. Call us at (888) 510-2212 for a free consultation with a life insurance attorney.
Call (888) 510-2212 for a free consultation.